Gold regains safe-haven status as European crisis continues.
(1888PressRelease) October 26, 2011 - MIAMI, FL - Gold has consolidated, and improved on, the gains made yesterday as concern continues to grow that there may not be a satisfactory resolution of the European debt crisis. It appears that EU talks may be deadlocked; probably with regard to the amount of losses Greece's creditors should accept. It is now accepted that Greece's debt must be cut by at least 50%, preferably more, if a proposed solution is to be sustainable. Additionally, there is fear of contagion as economists see Greece's problems spreading to Italy. Italy is Europe's third largest economy and has a debt level of 120% of GDP, making it second only to Greece in terms of debt within the euro zone.
Given this situation it is not surprising that we are seeing a huge increase in safe-haven demand for gold bullion. Gold is now firmly above $1700, trading, at the time of writing, at $1725, a one-month high.
"We are not surprised to see investors turning to gold as a safe haven at this time," says Bill Hionas, CEO of Pan American Metals of Miami. "What was surprising was the fact that gold seemed to have lost its safe-haven status and was behaving uncharacteristically, moving in tandem with equities and with the euro. The current surge in demand is actually the more predictable pattern. With the ongoing concerns in Europe, and no quick resolution in sight, investors will naturally be searching for a safe haven and gold has always provided this."
Investors wishing to diversify into gold should contact the team at Pan American Metals of Miami for further information. PAMOM's team offers specialized advice tailored to each investor's specific needs.
Pan American Metals of Miami, LLC is a group of traders, investors and account executives that combines many years of experience to help clients invest in bullion. PAMM provides an individual investment service and is based in Miami, Florida for convenient access to both North and South American investors.